Andreas Rusnjak
eMail: aru@businessmodelcreativity.net
URI: businessmodelcreativity.net
Twitter & facebook: bmcreativity
R...
About Andreas
• Year of birth 1974
• Diploma Degree in Economics
• Master Degree in Business
Administration
• Job- & Start...
Work in Progress…
Agenda
• In General
• Business Modeling
• Lean Startup
• Rules for Success
• Speed Creation
The Goal of every Company should be to create and
deliver a customer value which will be better than
the value offered by ...
Increasing competitive pressure, technological
advance, innovation, changing social values and a
continuously rising power...
Usenet, Torrents, Rapidshare, Megaupload,
Youtube  Decreasing CD-Sales
Bildquelle: Deviantart | Music | ~Miggi4Deviant
Bildquelle: Deviantart | Warner Bros. | *JohnVichlenski
e.g. Apple's iBooks Author or Amazon's
Kindle Direct Publishing enables Authors to
publish their books easy by themselves
...
Success Recipes:
Radical Profit Formula
Market-Oriented Value Propositions
Bringing strengths, know how and key resources ...
Macintosh
Computer
iMac
iPod
iPhone
iPad
Combination of technology-
and design-based solutions
Improving a single product
...
Trends for this Decade
• Functionality
• Engagement & Experience
• Co-Creation & Lean-Startup
• Coopetition
• Crowdfunding...
Bildquelle:Deviantart|change|~sphinxed
Bildquelle:Deviantart|change|~sphinxed
Competitive Advantage is not longer sustainable!
• Classic Strategy building
• points to static business models
• lays out...
The Transformation-Cycles
of business models
will become more frequent
and will occur at increasingly short intervals
In this context Transformation means the development,
the design, the change and/ or the implementation
of a business mode...
Roles involved in transformation processes
• Management
• Human Resources
• Design
• Procurement
• Production
• Finance
• ...
Participants of Transformation Projects are often different
in their professional Background and their Experience
as well ...
• Unrealistic Goals
• Important Stakeholders are not involved
• Lack of support by the Top Management
• Insufficient Resou...
It is a 100 times more expensive
to fix errors in Production than during the
earliest Development phases of
Transformation...
Agenda
• In General
• Business Modeling
• Lean Startup
• Rules for Success
• Speed Creation
Level of Competition
Price
"Business model innovation
will become as important
as technological innovation."
Henry Chesbrough (2011)
A business model describes in an abstract way a
relevant selection of products (goods and
services), necessary means and c...
Important elements of a business model are
(1) involved actors (e.g. customers, suppliers, co-operation partner,
competito...
FORBEGINNERSBusinessModelCanvas
FORPROFESSIONALSBMCreativityFramework
ExternalView
This side addresses the WHO  Do the right things!
InternalView
This side addresses the HOW  Do the things right!
ValueView
Focus to NABC-Framework, generally used at the begin of the business modeling process.
This view addresses the W...
CompetitiveView
Focus to Key Resources, Key Activities, Competition, internal Critical Success Factors,
Approach, Channels...
Customer/NetworkView
Focus to Need, Benefit, Customers, Customer Relationships, external Critical Success Factors,
Key Par...
Agenda
• In General
• Business Modeling
• Lean Startup
• Rules for Success
• Speed Creation
Find a Way to
bring it to Market
Define the Problem and its
possible Solution
Process (in short)
EntrepreneurialBusinessMo...
NABC-Approach helps to create a Value Proposition
• N: What are the most important, vital Customer- and Market-
Needs or P...
The Lean-Startup-Approach
• Focus to Business Models not Business Plans
• Build Hypothesis, ask your Customers and test th...
FollowingtheCREACTION-Approach
Go out of the building!!!
From Value Proposition to Business Model Innovation/ Transformation
Bringing Strengths, e.g. Key Activities & Key Resources to Market
Agenda
• In General
• Business Modeling
• Lean Startup
• Rules for Success
• Speed Creation
Successful Companies …
• … listen to their Customers
• … set their Focus to Quality Leadership, not to Price Leadership
• ...
To innovate your Business Model ask yourself…
• What Customer Needs will the new Business Model address?
• What novel Acti...
You should discuss on these three Meta-Levels
• Content
• How much of your Revenue is generated/ can be generated online/ ...
5 common Mistakes Entrepreneurs are regret
• Ask the Customers to late
 Don't finalize before you sell it!
• Not listen t...
Agenda
• In General
• Business Modeling
• Lean Startup
• Rules for Success
• Speed Creation
What is a Speed Creation?
• 2-3 Days (interdisciplinary) Workshop to create Requirements/
Business Models for Services and...
Results after 20 Months
• Decreasing the average "Time to Market" from 9-10 M to 5-6 M
• 20-25% Savings on internal Resour...
Sources
• Forrester Research Inc.
• Harvard Business Review
• MIT Sloan Management Review
• Dissertation
• Matthias Pohle ...
QUESTIONS/ DISCUSSION?
Business Model Creativity - Technology by itself is not a guarantee for a good Business Model
Business Model Creativity - Technology by itself is not a guarantee for a good Business Model
Business Model Creativity - Technology by itself is not a guarantee for a good Business Model
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Business Model Creativity - Technology by itself is not a guarantee for a good Business Model

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Lecture at the Radio Hack Day 2013 in Berlin

Published in: Business, Technology

Transcript of "Business Model Creativity - Technology by itself is not a guarantee for a good Business Model"

  1. 1. Andreas Rusnjak eMail: aru@businessmodelcreativity.net URI: businessmodelcreativity.net Twitter & facebook: bmcreativity Radio Hack Day 2013 29.06.2013 Business Model Creativity Technology by itself is not a guarantee for a good Business Model
  2. 2. About Andreas • Year of birth 1974 • Diploma Degree in Economics • Master Degree in Business Administration • Job- & Startup-Experience • HUK-Coburg, Jobscout24 • flyerwire, Scovilla, Caban • Team Leader @ baur.de: Data-driven eCommerce & Business Analysis • Lecturer and Consultant in Business Model Innovation/ Transformation • Dissertation @ CAU Kiel/ Uni Leipzig • Business Model Innovation • Business Model Transformation • Initiator of runpat.com • Focus • e/ mCommerce • Consulting, Coaching • Entrepreneurship/ Intrapreneurship • Business Modeling • Strategy Development
  3. 3. Work in Progress…
  4. 4. Agenda • In General • Business Modeling • Lean Startup • Rules for Success • Speed Creation
  5. 5. The Goal of every Company should be to create and deliver a customer value which will be better than the value offered by the competition.
  6. 6. Increasing competitive pressure, technological advance, innovation, changing social values and a continuously rising power of the user are forcing companies more and more to challenge and change their business models, to develop new business models or to liquidate existing ones.
  7. 7. Usenet, Torrents, Rapidshare, Megaupload, Youtube  Decreasing CD-Sales Bildquelle: Deviantart | Music | ~Miggi4Deviant
  8. 8. Bildquelle: Deviantart | Warner Bros. | *JohnVichlenski
  9. 9. e.g. Apple's iBooks Author or Amazon's Kindle Direct Publishing enables Authors to publish their books easy by themselves Bildquelle: Deviantart | Book Store | ~varunabhiram
  10. 10. Success Recipes: Radical Profit Formula Market-Oriented Value Propositions Bringing strengths, know how and key resources to market Brokerage for used books Marketplace 3rd-party sellers OEM (Kindle) Content Provider (lovefilm, eBooks) Online Book Store Amazon Web Services Shipping Consumer Goods
  11. 11. Macintosh Computer iMac iPod iPhone iPad Combination of technology- and design-based solutions Improving a single product in many different ways Bildquelle: Deviantart | Apple | ~TheDeadManWalking
  12. 12. Trends for this Decade • Functionality • Engagement & Experience • Co-Creation & Lean-Startup • Coopetition • Crowdfunding/ Community-Funding • Eco-/ Green Business Models • … Adapted from: Thaesis
  13. 13. Bildquelle:Deviantart|change|~sphinxed
  14. 14. Bildquelle:Deviantart|change|~sphinxed
  15. 15. Competitive Advantage is not longer sustainable! • Classic Strategy building • points to static business models • lays out the tools that leading to agile performance • Today Business Model follow Strategy follow Business Model • Identify Opportunities fast  Listen to/ Ask your customers • Bring/ Scale them to market  Lean steps & Test it, test it, test it! • Love it, change it or leave it  Transform your Products/ Business Model
  16. 16. The Transformation-Cycles of business models will become more frequent and will occur at increasingly short intervals
  17. 17. In this context Transformation means the development, the design, the change and/ or the implementation of a business model. Today the capability for transformation can be seen as a critical success factor for companies.
  18. 18. Roles involved in transformation processes • Management • Human Resources • Design • Procurement • Production • Finance • Research & Development • Sales • Marketing • IT • Customer Care • Consultants • …
  19. 19. Participants of Transformation Projects are often different in their professional Background and their Experience as well as in their social Background and Education. These People often speak and think in different Pictures and Languages.
  20. 20. • Unrealistic Goals • Important Stakeholders are not involved • Lack of support by the Top Management • Insufficient Resources • Unclear Context to Strategy • Poor Communication • No or little Involvement of the Project Members Common reasons for the failure of transformation projects
  21. 21. It is a 100 times more expensive to fix errors in Production than during the earliest Development phases of Transformation Projects. B. Boehm and V. Basili, “Software Defect Reduction Top 10 List,” IEEE Computer, vol. 34(1): 135-137, January 2001
  22. 22. Agenda • In General • Business Modeling • Lean Startup • Rules for Success • Speed Creation
  23. 23. Level of Competition Price
  24. 24. "Business model innovation will become as important as technological innovation." Henry Chesbrough (2011)
  25. 25. A business model describes in an abstract way a relevant selection of products (goods and services), necessary means and corresponding information-, transfer and financial-flows along the value chain(s) of a company or a business unit.
  26. 26. Important elements of a business model are (1) involved actors (e.g. customers, suppliers, co-operation partner, competitors, etc.) and their goals/ intention, (2) the value proposition, (3) channels and (4) relationships, (5) key resources, (6) key activities, (7) relevant costs and (8) revenues as well as (9) critical success factors and (10) the representation of the competitive strategies.
  27. 27. FORBEGINNERSBusinessModelCanvas
  28. 28. FORPROFESSIONALSBMCreativityFramework
  29. 29. ExternalView This side addresses the WHO  Do the right things!
  30. 30. InternalView This side addresses the HOW  Do the things right!
  31. 31. ValueView Focus to NABC-Framework, generally used at the begin of the business modeling process. This view addresses the WHAT and is the base to configure the other components around the value proposition!
  32. 32. CompetitiveView Focus to Key Resources, Key Activities, Competition, internal Critical Success Factors, Approach, Channels, Market-based Strategies and the Revenue Model
  33. 33. Customer/NetworkView Focus to Need, Benefit, Customers, Customer Relationships, external Critical Success Factors, Key Partners, Cost Structure and Resource-based Strategies
  34. 34. Agenda • In General • Business Modeling • Lean Startup • Rules for Success • Speed Creation
  35. 35. Find a Way to bring it to Market Define the Problem and its possible Solution Process (in short) EntrepreneurialBusinessModeling
  36. 36. NABC-Approach helps to create a Value Proposition • N: What are the most important, vital Customer- and Market- Needs or Pains that point to needs? • A: What are the unique Approaches to address these needs? • B: What is the specific Benefit for your customers and your company? • C: How predominant are these approaches against your Competition or Alternatives available for your customers?
  37. 37. The Lean-Startup-Approach • Focus to Business Models not Business Plans • Build Hypothesis, ask your Customers and test them • Agile (Product-)Development • Build a minimal viable Product • Failure is expected  Repair trough Iteration/ Pivot or Redesign • Act SMART  No Income Statement, Balance Sheet, Finance Plan • Actions are based on a high Tempo and on sufficient Data
  38. 38. FollowingtheCREACTION-Approach Go out of the building!!!
  39. 39. From Value Proposition to Business Model Innovation/ Transformation
  40. 40. Bringing Strengths, e.g. Key Activities & Key Resources to Market
  41. 41. Agenda • In General • Business Modeling • Lean Startup • Rules for Success • Speed Creation
  42. 42. Successful Companies … • … listen to their Customers • … set their Focus to Quality Leadership, not to Price Leadership • … increasing Revenue before downsizing Costs • … making Decisions based on Data, not on Beliefs • … build Hypothesis/ Prototypes and test them • … finding extraordinary Value Propositions and build Ecosystems
  43. 43. To innovate your Business Model ask yourself… • What Customer Needs will the new Business Model address? • What novel Activities help to satisfy those Needs? • How could the Activities be linked in novel Ways? • Who should perform these Activities? • How will Value created for each Stakeholder? • What Revenue Models can be adopted to complement the Business Model?
  44. 44. You should discuss on these three Meta-Levels • Content • How much of your Revenue is generated/ can be generated online/ via App • What do your customers find most valuable of the content you provide today? • What other Content could you provide that customers would value or pay for? • Experience • Do you know how good your customer experience is? Who owns it? • What aspects of your digital customer experience do/ will customers like and what do/ will they find frustrating? • Who has the best customer experience in your/ similar industry • Platform • How good are your internal digital platforms? Who owns them? • How can you expose more of your internal digital platforms to improve their experience? • How can you better leverage the market for your platforms, e.g. the cloud, software as a service, partners, external data?
  45. 45. 5 common Mistakes Entrepreneurs are regret • Ask the Customers to late  Don't finalize before you sell it! • Not listen to the Customers • Offering Sales Discounts at the Seed-/ Startup-phase • Sell to Family and Friends • Missing strategic Customers
  46. 46. Agenda • In General • Business Modeling • Lean Startup • Rules for Success • Speed Creation
  47. 47. What is a Speed Creation? • 2-3 Days (interdisciplinary) Workshop to create Requirements/ Business Models for Services and Goods • Introduced in the Corporate Business Unit of Telco-Company • Pointing to Entrepreneurial/ Intrapreneurial Business Modeling • Design-Thinking Tools as well as Lean-Startup-Tools and Approaches from classic Requirements Engineering are used • Moderated and supported by "Speed Coaches"
  48. 48. Results after 20 Months • Decreasing the average "Time to Market" from 9-10 M to 5-6 M • 20-25% Savings on internal Resources within the Feasibility and Implementation-Phase • 20 Speed Creations saves ca. 3 Mio. CHF • 80% of the Business Requirements Set were created within the first 72 hours • Better Commitment over all involved Departments/ Roles • Rollout from the Corporate Business Unit over the whole Group
  49. 49. Sources • Forrester Research Inc. • Harvard Business Review • MIT Sloan Management Review • Dissertation • Matthias Pohle (Swisscom Schweiz AG) • More Information:
  50. 50. QUESTIONS/ DISCUSSION?

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